Money laundering inflates London house prices

Russian money laundering has driven up UK house prices, with an estimated £6.7bn of questionable funds invested in property since 2016, according to Transparency International. The organisation highlighted that £1.5bn of this comes from Russians linked to corruption or the Kremlin, with significant investments in Westminster (£430m) and Kensington and Chelsea (£283m). This influx of illicit wealth, particularly in London’s high-end market, has had ripple effects across the housing sector. Home Secretary Yvette Cooper and Foreign Secretary David Lammy criticised the use of London’s financial and property markets as tools for criminal activities. Writing in the Telegraph, they stated: "Britain needs to be making life as hard as possible for illicit finance," linking such activities to Putin’s regime, street gangs, and migrant smuggling operations. The Government has pledged to curb the exploitation of London’s financial system and mitigate its impact on housing affordability and crime. 

The Daily Telegraph (10/12/2024)